Global Financial Market

The scenario of global financial market is going through a phase of transformation every day. This is happening due to the result of increased competition among the participants of the different financial markets all over the world.

A financial market can be domestic or international.

The global financial market is a collection of all the financial markets present in different countries of the world. The global financial market deals with buying and selling of financial security instruments like stocks and bonds, commodities like precious metals (gold and silver) and cereals, and other tradeable or exchangeable items on an international basis.

The global financial market functions as an important device for bringing increased liquidity.

The global financial market can be categorized into the following types:

• Commodity Markets
• Money Markets
• Derivatives Markets: Futures Markets
• Insurance Markets
• Foreign Exchange Markets
• Capital Markets: Stock markets and Bond markets

The global financial market forms a major part of the global economy. It facilitates the businesses in many ways, such as:

• It helps the companies regarding financing of capital in capital markets
• It helps international commerce and trade in the foreign exchange markets
• It helps to transfer risks in the derivative markets

The different theories that are applied in the analysis of global financial markets include the following:

• Technical Analysis
• Fundamental Analysis
• Index Momentum Analysis
• Securities Momentum Analysis
• Securities Chart Analysis
• Securities Market Analysis

The global stock markets constitute an important segment of the global financial market.

The leading stock exchanges of the world include the following:

• The New York Stock Exchange or NYSE (merged with Euronext)
• London Stock Exchange
• Euronext (merged with NYSE)
• Tokyo Stock Exchange
• The Bombay Stock Exchange (BSE)
• Hong Kong Stock Exchange
• NASDAQ or National Association of Securities Dealers Automated Quotations
• Frankfurt Stock Exchange
• Toronto Stock Exchange
• Shanghai Stock Exchange
• Madrid Stock Exchange
• Australian Securities Exchange